New Risk • May 19
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 5.9% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (5.9% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (4.2% net profit margin). Valuation Update With 7 Day Price Move • May 19
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥19.94, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 28x in the Machinery industry in China. Total returns to shareholders of 90% over the past three years. New Risk • May 01
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 4.2% Last year net profit margin: 7.9% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (6.6% operating cash flow to total debt). Earnings have declined by 7.5% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (4.2% net profit margin). Reported Earnings • May 01
First quarter 2026 earnings released: EPS: CN¥0.13 (vs CN¥0.14 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.13 (down from CN¥0.14 in 1Q 2025). Revenue: CN¥1.84b (down 6.4% from 1Q 2025). Net income: CN¥116.2m (down 10.0% from 1Q 2025). Profit margin: 6.3% (down from 6.6% in 1Q 2025). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Announcement • Apr 29
Wuxi Huaguang Environment & Energy Group Co.,Ltd., Annual General Meeting, May 21, 2026 Wuxi Huaguang Environment & Energy Group Co.,Ltd., Annual General Meeting, May 21, 2026, at 13:30 China Standard Time. Location: 15F, No. 8, Jinrong 1st Street, Wuxi, Jiangsu China Announcement • Mar 30
Wuxi Huaguang Environment & Energy Group Co.,Ltd. to Report Q1, 2026 Results on Apr 29, 2026 Wuxi Huaguang Environment & Energy Group Co.,Ltd. announced that they will report Q1, 2026 results on Apr 29, 2026 New Risk • Mar 27
New major risk - Revenue and earnings growth Earnings have declined by 0.9% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Earnings have declined by 0.9% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (9.7% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Mar 19
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥18.85, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 28x in the Machinery industry in China. Total returns to shareholders of 72% over the past three years. New Risk • Jan 29
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 9.7% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (9.7% average weekly change). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Jan 09
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥21.39, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 27x in the Machinery industry in China. Total returns to shareholders of 161% over the past three years. Announcement • Dec 26
Wuxi Huaguang Environment & Energy Group Co.,Ltd. to Report Fiscal Year 2025 Results on Apr 29, 2026 Wuxi Huaguang Environment & Energy Group Co.,Ltd. announced that they will report fiscal year 2025 results on Apr 29, 2026 Valuation Update With 7 Day Price Move • Dec 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥19.47, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 25x in the Machinery industry in China. Total returns to shareholders of 148% over the past three years. New Risk • Nov 07
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 19% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (11% average weekly change). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Nov 06
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to CN¥18.49, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 26x in the Machinery industry in China. Total returns to shareholders of 101% over the past three years. Reported Earnings • Oct 29
Third quarter 2025 earnings released: EPS: CN¥0.06 (vs CN¥0.089 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.06 (down from CN¥0.089 in 3Q 2024). Revenue: CN¥2.25b (up 52% from 3Q 2024). Net income: CN¥58.8m (down 30% from 3Q 2024). Profit margin: 2.6% (down from 5.7% in 3Q 2024). Revenue is forecast to grow 8.8% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Announcement • Sep 30
Wuxi Huaguang Environment & Energy Group Co.,Ltd. to Report Q3, 2025 Results on Oct 29, 2025 Wuxi Huaguang Environment & Energy Group Co.,Ltd. announced that they will report Q3, 2025 results on Oct 29, 2025 Valuation Update With 7 Day Price Move • Sep 12
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to CN¥16.25, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 26x in the Machinery industry in China. Total returns to shareholders of 119% over the past three years. New Risk • Sep 08
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 13% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (12% average weekly change). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Aug 22
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥25.92, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 27x in the Machinery industry in China. Total returns to shareholders of 218% over the past three years. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to CN¥17.51, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 25x in the Machinery industry in China. Total returns to shareholders of 128% over the past three years. New Risk • Jul 09
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (45% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.9% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Jul 04
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥12.57, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 22x in the Machinery industry in China. Total returns to shareholders of 63% over the past three years. Announcement • Jun 30
Wuxi Huaguang Environment & Energy Group Co.,Ltd. to Report First Half, 2025 Results on Aug 29, 2025 Wuxi Huaguang Environment & Energy Group Co.,Ltd. announced that they will report first half, 2025 results on Aug 29, 2025 New Risk • May 19
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 45% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (45% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Reported Earnings • May 02
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.75 (down from CN¥0.79 in FY 2023). Revenue: CN¥9.11b (down 13% from FY 2023). Net income: CN¥704.3m (down 5.0% from FY 2023). Profit margin: 7.7% (up from 7.1% in FY 2023). Revenue missed analyst estimates by 24%. Earnings per share (EPS) also missed analyst estimates by 19%. Revenue is forecast to grow 21% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • Apr 29
Wuxi Huaguang Environment & Energy Group Co.,Ltd., Annual General Meeting, May 20, 2025 Wuxi Huaguang Environment & Energy Group Co.,Ltd., Annual General Meeting, May 20, 2025, at 13:30 China Standard Time. Announcement • Apr 16
Wuxi Huaguang Environment & Energy Group Co.,Ltd. (SHSE:600475) announces an Equity Buyback for CNY 150 million worth of its shares. Wuxi Huaguang Environment & Energy Group Co.,Ltd. (SHSE:600475) announces a share repurchase program. Under the program, the company will repurchase up to CNY 150 million worth of its shares. The price for share repurchase will not exceed CNY 13 per share The purpose of the program is to maintain the company's value and protect shareholders' rights. The program will be funded using the company's own funds or self-raised funds. The program is valid till July 14, 2025. Announcement • Mar 28
Wuxi Huaguang Environment & Energy Group Co.,Ltd. to Report Q1, 2025 Results on Apr 29, 2025 Wuxi Huaguang Environment & Energy Group Co.,Ltd. announced that they will report Q1, 2025 results on Apr 29, 2025 Announcement • Dec 27
Wuxi Huaguang Environment & Energy Group Co.,Ltd. to Report Fiscal Year 2024 Results on Apr 29, 2025 Wuxi Huaguang Environment & Energy Group Co.,Ltd. announced that they will report fiscal year 2024 results on Apr 29, 2025 New Risk • Oct 30
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 3.2% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (3.2% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Reported Earnings • Oct 30
Third quarter 2024 earnings released: EPS: CN¥0.089 (vs CN¥0.12 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.089 (down from CN¥0.12 in 3Q 2023). Revenue: CN¥1.47b (down 46% from 3Q 2023). Net income: CN¥84.0m (down 20% from 3Q 2023). Profit margin: 5.7% (up from 3.9% in 3Q 2023). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Announcement • Sep 30
Wuxi Huaguang Environment & Energy Group Co.,Ltd. to Report Q3, 2024 Results on Oct 30, 2024 Wuxi Huaguang Environment & Energy Group Co.,Ltd. announced that they will report Q3, 2024 results on Oct 30, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥9.83, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 15x in the Machinery industry in China. Total returns to shareholders of 13% over the past three years. Reported Earnings • Sep 03
Second quarter 2024 earnings released: EPS: CN¥0.22 (vs CN¥0.20 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.22 (up from CN¥0.20 in 2Q 2023). Revenue: CN¥2.86b (up 2.5% from 2Q 2023). Net income: CN¥211.0m (up 12% from 2Q 2023). Profit margin: 7.4% (up from 6.8% in 2Q 2023). Revenue is forecast to grow 7.8% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 1% per year and the company’s share price has also fallen by 1% per year. Announcement • Jun 28
Wuxi Huaguang Environment & Energy Group Co.,Ltd. to Report First Half, 2024 Results on Aug 30, 2024 Wuxi Huaguang Environment & Energy Group Co.,Ltd. announced that they will report first half, 2024 results on Aug 30, 2024 New Risk • May 16
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 3.8% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (3.8% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Announcement • Apr 29
Wuxi Huaguang Environment & Energy Group Co.,Ltd., Annual General Meeting, Jun 05, 2024 Wuxi Huaguang Environment & Energy Group Co.,Ltd., Annual General Meeting, Jun 05, 2024, at 13:30 China Standard Time. Location: 15F, No. 8, Jinrong 1st Street, Wuxi, Jiangsu China New Risk • Apr 28
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 3.9% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (3.9% operating cash flow to total debt). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Apr 28
First quarter 2024 earnings released: EPS: CN¥0.20 (vs CN¥0.23 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.20 (down from CN¥0.23 in 1Q 2023). Revenue: CN¥2.90b (up 31% from 1Q 2023). Net income: CN¥186.4m (down 16% from 1Q 2023). Profit margin: 6.4% (down from 10.0% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 10% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Announcement • Mar 29
Wuxi Huaguang Environment & Energy Group Co.,Ltd. to Report Q1, 2024 Results on Apr 27, 2024 Wuxi Huaguang Environment & Energy Group Co.,Ltd. announced that they will report Q1, 2024 results on Apr 27, 2024 Announcement • Mar 27
China Structural Reform Fund II, managed by Chengtong Fund Management Co., Ltd., completed the acquisition of 14.6166%s stake in Wuxi Huaguang Environment & Energy Group Co.,Ltd. (SHSE:600475) from Wuxi GuoLian Development (Group) Co.,Ltd. China Structural Reform Fund II, managed by Chengtong Fund Management Co., Ltd., agreed to acquire 14.6166%s stake in Wuxi Huaguang Environment & Energy Group Co.,Ltd. (SHSE:600475) from Wuxi GuoLian Development (Group) Co.,Ltd for CNY 1.15 billion on November 10, 2023. As per the transaction, China Structural Reform Fund II, managed by Chengtong Fund Management Co., Ltd. will acquire 137.9 million shares at CNY 8.35 per share. China Structural Reform Fund II, managed by Chengtong Fund Management Co., Ltd., completed the acquisition of 14.6166%s stake in Wuxi Huaguang Environment & Energy Group Co.,Ltd. (SHSE:600475) from Wuxi GuoLian Development (Group) Co.,Ltd on March 25, 2024. Valuation Update With 7 Day Price Move • Feb 29
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥12.31, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 16x in the Machinery industry in China. Total returns to shareholders of 90% over the past three years. Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥9.17, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 14x in the Machinery industry in China. Total returns to shareholders of 58% over the past three years. Announcement • Dec 30
Wuxi Huaguang Environment & Energy Group Co.,Ltd. to Report Fiscal Year 2023 Results on Apr 27, 2024 Wuxi Huaguang Environment & Energy Group Co.,Ltd. announced that they will report fiscal year 2023 results on Apr 27, 2024 Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.12 (vs CN¥0.11 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.12 (up from CN¥0.11 in 3Q 2022). Revenue: CN¥2.71b (up 45% from 3Q 2022). Net income: CN¥105.5m (up 6.2% from 3Q 2022). Profit margin: 3.9% (down from 5.3% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 6% per year whereas the company’s share price has increased by 10% per year. Announcement • Sep 30
Wuxi Huaguang Environment & Energy Group Co.,Ltd. to Report Q3, 2023 Results on Oct 28, 2023 Wuxi Huaguang Environment & Energy Group Co.,Ltd. announced that they will report Q3, 2023 results at 3:00 PM, China Standard Time on Oct 28, 2023 New Risk • Sep 01
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 8.5% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (8.5% operating cash flow to total debt). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Aug 29
Second quarter 2023 earnings released: EPS: CN¥0.20 (vs CN¥0.20 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.20. Revenue: CN¥2.79b (up 26% from 2Q 2022). Net income: CN¥188.9m (down 1.2% from 2Q 2022). Profit margin: 6.8% (down from 8.7% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Machinery industry in China. Buying Opportunity • Aug 09
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 8.2%. The fair value is estimated to be CN¥13.61, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 14%. Revenue is forecast to grow by 35% in 2 years. Earnings is forecast to grow by 43% in the next 2 years. Announcement • Jun 28
Wuxi Huaguang Environment & Energy Group Co.,Ltd. to Report First Half, 2023 Results on Aug 29, 2023 Wuxi Huaguang Environment & Energy Group Co.,Ltd. announced that they will report first half, 2023 results on Aug 29, 2023 Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥12.06, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 19x in the Machinery industry in China. Total returns to shareholders of 97% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥7.57 per share. Reported Earnings • Apr 26
First quarter 2023 earnings released: EPS: CN¥0.23 (vs CN¥0.23 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.23 (up from CN¥0.23 in 1Q 2022). Revenue: CN¥2.21b (up 12% from 1Q 2022). Net income: CN¥220.9m (up 6.6% from 1Q 2022). Profit margin: 10.0% (in line with 1Q 2022). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 18% per year. Valuation Update With 7 Day Price Move • Mar 17
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥13.26, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 20x in the Machinery industry in China. Total returns to shareholders of 124% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥7.46 per share. Valuation Update With 7 Day Price Move • Feb 15
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥10.75, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 22x in the Machinery industry in China. Total returns to shareholders of 111% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥7.02 per share. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 9 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Xiao Ping Chen was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Nov 07
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥10.98, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 20x in the Machinery industry in China. Total returns to shareholders of 110% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥4.96 per share. Reported Earnings • Oct 29
Third quarter 2022 earnings released: EPS: CN¥0.11 (vs CN¥0.14 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.11 (down from CN¥0.14 in 3Q 2021). Revenue: CN¥1.87b (up 22% from 3Q 2021). Net income: CN¥99.3m (down 22% from 3Q 2021). Profit margin: 5.3% (down from 8.3% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 19% per year. Reported Earnings • Aug 31
Second quarter 2022 earnings released: EPS: CN¥0.20 (vs CN¥0.18 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.20 (up from CN¥0.18 in 2Q 2021). Revenue: CN¥2.21b (up 13% from 2Q 2021). Net income: CN¥191.1m (up 7.4% from 2Q 2021). Profit margin: 8.7% (down from 9.1% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 33%, compared to a 35% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Price Target Changed • Apr 27
Price target increased to CN¥15.00 Up from CN¥11.54, the current price target is provided by 1 analyst. New target price is 51% above last closing price of CN¥9.94. Stock is down 13% over the past year. The company is forecast to post earnings per share of CN¥1.26 for next year compared to CN¥1.06 last year. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 12 experienced directors. No highly experienced directors. 5 independent directors (7 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Apr 19
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: CN¥0.30 (up from CN¥0.29 in 1Q 2021). Revenue: CN¥1.97b (up 16% from 1Q 2021). Net income: CN¥207.2m (up 2.2% from 1Q 2021). Profit margin: 11% (down from 12% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 6.3%. Earnings per share (EPS) exceeded analyst estimates by 5.1%. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Dec 29
Wuxi Huaguang Environment & Energy Group Co., Ltd. (SHSE:600475) signed the equity purchase agreement to acquire a 58.25% stake in CMEC Guolian Wuxi New Energy Development Co., Ltd. from Wuxi Guolian Industry Investment Group Co., Ltd. for CNY 300 million. Wuxi Huaguang Environment & Energy Group Co., Ltd. (SHSE:600475) signed the equity purchase agreement to acquire a 58.25% stake in CMEC Guolian Wuxi New Energy Development Co., Ltd. from Wuxi Guolian Industry Investment Group Co., Ltd. for CNY 300 million on December 27, 2021. The consideration will be paid in cash. The total assets, net assets, operating income and net profit of CMEC Guolian Wuxi were CNY 2004.09 million, CNY 853.89 million, CNY 192.92 million and CNY 59.32 million, respectively, for the period ended September 30, 2021. The transaction was approved by the board of director and supervisors of Wuxi Huaguang Environment. The transaction has been approved by the Wuxi State-owned Assets Supervision and Administration Commission. Announcement • Dec 28
Wuxi Huaguang Environment & Energy to Buy 58.3% Stake in New Energy Firm Wuxi Huaguang Environment & Energy Group Co., Ltd. (SHSE:600475) said it plans to buy 58.3% stake in New Energy Firm for CNY 301.1 million ($47.28 million). Reported Earnings • Oct 16
Third quarter 2021 earnings released: EPS CN¥0.18 (vs CN¥0.14 in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: CN¥1.53b (down 11% from 3Q 2020). Net income: CN¥127.0m (up 30% from 3Q 2020). Profit margin: 8.3% (up from 5.6% in 3Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 20% per year and the company’s share price has also increased by 20% per year. Reported Earnings • Aug 26
Second quarter 2021 earnings released: EPS CN¥0.23 (vs CN¥0.22 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were flat. Second quarter 2021 results: Revenue: CN¥1.95b (up 21% from 2Q 2020). Net income: CN¥178.1m (up 9.6% from 2Q 2020). Profit margin: 9.1% (in line with 2Q 2020). Over the last 3 years on average, earnings per share has increased by 18% per year whereas the company’s share price has increased by 13% per year. Announcement • Jul 22
Wuxi Huaguang Environment & Energy Group Co., Ltd. (SHSE:600475) intends to acquire an additional 20% stake in Wuxi Lantian Gas Turbine Thermal Power Co., Ltd. from GCL Wisdom (Suzhou) Energy and Power Investment Co., Ltd. for CNY 74.7 million. Wuxi Huaguang Environment & Energy Group Co., Ltd. (SHSE:600475) intends to acquire an additional 20% stake in Wuxi Lantian Gas Turbine Thermal Power Co., Ltd. from GCL Wisdom (Suzhou) Energy and Power Investment Co., Ltd. for CNY 74.7 million on July 22, 2021. The purchase price will be paid in cash. As of March 31, 2021, Wuxi Lantian Gas Turbine Thermal Power Co., Ltd. had total assets of CNY 1 billion and net assets of CNY 358 million. Post-closing, Wuxi Huaguang Environment & Energy Group Co., Ltd. will hold a 55% stake in Wuxi Lantian Gas Turbine Thermal Power Co., Ltd. The transaction is subject to approval by the shareholders of Wuxi Huaguang Environment & Energy Group Co., Ltd. The transaction was approved by the 32nd meeting of the seventh Board of Directors of Wuxi Huaguang Environment & Energy Group Co., Ltd. Jiangsu Zhongqi Huazhongtian Asset Appraisal Co., Ltd. acted as the appraiser in the transaction. Reported Earnings • Apr 20
First quarter 2021 earnings released: EPS CN¥0.37 (vs CN¥0.29 in 1Q 2020) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were weaker. First quarter 2021 results: Revenue: CN¥1.70b (up 75% from 1Q 2020). Net income: CN¥202.9m (up 25% from 1Q 2020). Profit margin: 12% (down from 17% in 1Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 16
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥14.20, the stock trades at a trailing P/E ratio of 14.8x, up from the previous P/E ratio of 12.4x. Average P/E is 33x in the Machinery industry in China. Total returns to shareholders over the past three years are 18%. Is New 90 Day High Low • Mar 08
New 90-day high: CN¥12.46 The company is up 1.0% from its price of CN¥12.35 on 08 December 2020. The Chinese market is also up 1.0% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it underperformed the Machinery industry, which is up 2.0% over the same period. Is New 90 Day High Low • Jan 13
New 90-day low: CN¥10.65 The company is down 19% from its price of CN¥13.21 on 15 October 2020. The Chinese market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 6.0% over the same period. Is New 90 Day High Low • Dec 28
New 90-day low: CN¥11.28 The company is down 15% from its price of CN¥13.25 on 29 September 2020. The Chinese market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 9.0% over the same period. Is New 90 Day High Low • Dec 12
New 90-day low: CN¥12.14 The company is down 4.0% from its price of CN¥12.60 on 11 September 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 4.0% over the same period. Is New 90 Day High Low • Oct 31
New 90-day low: CN¥12.21 The company is down 8.0% from its price of CN¥13.33 on 31 July 2020. The Chinese market is down 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 2.0% over the same period. Reported Earnings • Oct 20
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥535.0m, up 24% from the prior year. Total revenue was CN¥6.54b over the last 12 months, down 5.9% from the prior year. Announcement • Oct 16
Wuxi Huaguang Environment & Energy Group Co., Ltd. to Report Q3, 2020 Results on Oct 20, 2020 Wuxi Huaguang Environment & Energy Group Co., Ltd. announced that they will report Q3, 2020 results on Oct 20, 2020 Announcement • Jul 10
Wuxi Huaguang Environment & Energy Group Co., Ltd. to Report First Half, 2020 Results on Aug 28, 2020 Wuxi Huaguang Environment & Energy Group Co., Ltd. announced that they will report first half, 2020 results on Aug 28, 2020